Pringles Acquisition By Diamond Foods From P&G Is Worth $1.5B In Stocks

Pringles potato chips business by Procter & Gamble Co. is reportedly being acquired by Diamond Foods Inc. for $1.5billion, according to several international business sites.

According to earlier reports, Pringles is the last major food business being handled by P&G, manufacturer of major products that includes Tide and Pampers. Previously, P&G is into the manufacturing of several food products such as coffee, peanut butter, shortening and juice drinks. The company has already sold its major brands like Folgers, Jif, Crisco Shortening and Sunny Delight.

Diamond Foods, founded by California walnut growers in 1921, has already acquired Pop Secret in 2008 and Kettle last year. The Pringles acquisition is expected to triple Diamond’s revenue to about $2.4 billion annually. The company is now positioned as the second top snacks company behind PepsiCo Inc.’s Frito-Lay.

Michael J. Mendes, Diamond Chairman, President and CEO, said that “Pringles is an iconic, billion-dollar snack brand with significant global manufacturing and supply chain infrastructure.”

Pringles, has been in the market for over four decades and is being sold in more than 140 countries. The salty and savory snack has continued to add flavors based on the market area that includes mozzarella stick and marinara in North America, prawn cocktail in Europe, jalapeno in Latin America and seaweed in Asia. Other product variety includes Pringles Baked Stix in 2006, Pringles 100-calorie packs in 2007 and Pringles multigrain in 2009.